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The club said the development was key to securing Ashes Test matches at Old Trafford

Lancashire County Cricket is starting work later on phase two of the revamp of Old Trafford despite a legal row over its redevelopment.

The club faced a 20 April deadline as it was the last day it could qualify to receive a £5.2m grant from the North West Development Agency (NWDA).

This was because the agency is due to be wound up.

Derwent Holdings, owners of the nearby White City Retail Park is seeking to appeal against the redevelopment.

Lancashire are playing most of their home matches in the County Championship at Liverpool.

Last month the High Court rejected an application by developers Derwent for a judicial review of the planning permission granted to Lancashire.

Cash deadline

But Derwent, which is owned by Isle of Man-based millionaire Albert Gubay, wants leave to appeal at the Court of Appeal sparking a race against time for the cricket club.

It has accused Trafford Council of double standards because planners passed a plan for a nearby Tesco store but rejected Derwent's application for a Sainsbury's at White City.

The cricket club, which is working in partnership with Tesco, said it was confident of a legal victory, and is demolishing the F stand at Old Trafford as part of the plan to increase its capacity to 15,000 by the addition of two new grandstands.

Lancashire have argued that the upgrade was vital for Old Trafford to be a Test Match venue for the 2013 Ashes Series against Australia.